Serco, a provider of professional, technology, engineering, and management services, has today announced that it has agreed to acquire Northrop Grumman’s mission training and satellite ground network communications software business (MT&S).
Adding to Serco’s existing defense capabilities, MT&S provides the U.S. military with advanced mission training services, and software that makes satellite ground networks more efficient.
With expertise in training services and software engineering, and a track record of innovation, it supports programs across the U.S. Army, Space Force, Air Force, Navy, Combatant Commands and international partners. MT&S has a portfolio of U.S. defence service contracts with annual revenues of approximately $300 million.
The acquisition of MT&S will add scale to Serco in North America, growing our business beyond $2 billion of revenue. It will deliver value for customers, new opportunities for colleagues, and attractive returns for shareholders through:
- Enhanced Defense and Space Capabilities
The acquisition of Northrop Grumman’s mission training and satellite ground network communications software business represents a significant advancement in Serco’s mission-readiness offerings, integrating specialized expertise in synthetic training, exercise simulation, and ground satellite communications software solutions. Additionally, the combination will enable Serco to provide more robust, secure solutions that meet the increasingly complex needs of modern defense and space operations.
Increased Market Reach and Operational Scale
By acquiring this business, Serco will expand its footprint within the U.S. Department of Defense, strengthening partnerships with key customers such as the U.S. Army, Space Force, Air Force, Navy, and Combatant Commands.
Commitment to Innovation and Talent
The team of nearly 1,000 highly skilled professionals will join Serco’s workforce across North America, bringing invaluable expertise in areas such as digital engineering, software development, satellite ground communications software, and mission simulation. This will enable Serco to be even better positioned to drive innovation in defense technologies while supporting national security objectives.
- Global Growth and Expanded Space Market Presence
This acquisition supports Serco’s strategic growth goals within the international space sector. The MT&S business brings capabilities in space operations and services, including its 20+ year leadership in optimization software, enabling Serco to expand into high-growth international markets. This expertise aligns with Serco’s ambitions to strengthen its global space footprint, particularly in U.S., UK, Australian, and Middle Eastern markets.
The acquisition, subject to regulatory approvals, is expected to close in mid-2025, at a purchase price of $327 million.
Tom Watson, CEO of Serco in North America: “This acquisition is an important next step in our strategic journey and underscores Serco’s dedication to growth and innovation in mission-critical solutions. The integration of this enhanced portfolio of work will expand our footprint within the Defense market, strengthening Serco’s partnerships with key customers including the U.S. Army, Space Force, Air Force, Navy and Combatant Commands.
Upon closing, we look forward to the positive impact and invaluable expertise these new colleagues will bring to our organization in areas such as digital engineering, software development, satellite ground communications software, and mission simulation.”
Mark Irwin, Group CEO of Serco said: “We have approximately doubled revenue and more than trebled profit in Serco’s North America business in recent years through a successful combination of organic growth and strategic acquisitions. MT&S provides an excellent opportunity to continue that success.
The acquisition increases our scale, capabilities and growth potential in US defence, the largest defence market in the world, as well as providing solutions we can offer to our customers worldwide. The acquired capability delivers comprehensive, critical, technology-enabled services fully aligned to the US military’s focus on enhancing warfighting standards and readiness through solutions that are both efficient and effective.
We look forward to welcoming nearly 1,000 new colleagues from MT&S to Serco and are excited to add their knowledge and experience to our work supporting the U.S. Department of Defense’s enduring mission to provide combat-credible military forces needed to protect the security of the nation.”
Not Yet a Premium Partner/Sponsor? Learn more about the OS AI Premium Corporate and Individual Plans here. Plans start at $295 annually.
